Xobni is an e-mail add-on that analyzes your in-box to give you context around the people you communicate with. Recent updates also correlate against social sites like LinkedIn to provide even more information on people.
A company spokesperson told me that the funds will be used to add features and stability to the application, and to knock out a few remaining bugs that prevent some users (like me) from using the Xobni add-on. At the same time, the funds will help the company weather the tough economy. The company blog discusses a "focus on our premium business, and address the growing interest from our enterprise customer base," which meshes with Cisco's business model.